A new milestone has been reached in the energy sector: more than US$110 billion has already been invested in clean hydrogen projects around the world. This form of energy continues to experience rapid growth, signaling that this energy source could be one of the main options in the global energy transition scenario. According to a report prepared by the Hydrogen Council, there are currently more than 500 initiatives at an advanced stage or in operation involving clean hydrogen. This scenario generates global competition for clean energy, and China is leading the way, followed by the US and Europe, all betting on the fuel of the future.
The production of clean hydrogen is on the rise globally
The Global Hydrogen Compass report shows that, since 2020, investments in clean hydrogen have grown by approximately 50% annually. The sector has promising ideas and has already invested in concrete projects in several parts of the world. China appears as the sole leader in this market, with approximately US$33 billion invested, in addition to holding 50% of the world’s renewable hydrogen production capacity.
North America, specifically the United States, ranks second in this ranking, with US$23 billion invested in the clean hydrogen sector, followed by Europe, with US$19 billion. This race, while it may seem economical, has a strategic side: countries see hydrogen as a way to reduce dependence on fossil fuels and thus increase energy security.
In total, more than 1,700 projects have been announced in this sector since 2020, representing a more than sevenfold increase in the number of initiatives. Even in the face of current obstacles, hydrogen represents an advancement that has gone beyond being just a futuristic concept and has become a viable option for the construction market.
Challenges on the path to the adoption of hydrogen as a fuel
Although promising, the outlook is not that simple. This same report also records that approximately 50 clean hydrogen projects were canceled in the last 18 months, representing 3% of the total. Although this may seem like a small and insignificant number, it reveals that some barriers still exist in this sector.
Costs, policies, and market functioning
Some of the main challenges to be overcome are high production costs, high interest rates in some regions, and delays in implementing market-friendly public policies. Most early-stage projects end up falling by the wayside and being abandoned precisely because they lack the economic and political viability to execute.
There is a need to ensure real demand. By 2030, hydrogen production capacity is expected to reach 14 million tons per year, but for this to happen, consumers — including industry, transportation, and governments — must commit to purchase. This means that the transition depends not only on technology, but also on long-term agreements, investor confidence, and other factors.
A fuel with transformative potential for multiple industries
Clean hydrogen has significant potential, including emissions reductions, making it a key component in achieving global climate goals. Some countries have already created incentive policies, and local companies are investing in industrial-scale projects, demonstrating whether this sector can drive the economy beyond environmental issues. The expansion of hydrogen is expected to generate thousands of skilled jobs, thus boosting new production chains. More than just energy, hydrogen already represents new opportunities for economic development.
It’s clear that clean hydrogen is no longer just a passing trend; it has become a concrete bet for the future of the energy transition. Despite challenges related to cost, policies, and demand, the advancement of this sector shows that its potential is still visible, and the countries and companies that lead this transformation will have a strategic advantage in the new sustainable economy. Consumers can expect more affordable prices, more sustainable transportation, and products manufactured with a smaller carbon footprint.